Wage and Tax Statement Data on Employer FICA Tax

Ehrlich Co$.$ began business on January $2,20$Y$8.$ Salaries were paid to employees on the last day of each month, and social security tax, Medicare tax, and federal income tax were withheld in the required amounts. An employee who is hired in the middle of the month receives half the monthly salary for that month. All required payroll tax reports were filed, and the correct amount of payroll taxes was remitted by the company for the calendar year. Early in $20$Y$9,$ before the Wage and Tax Statements $($Form W$-2)$ could be prepared for distribution to employees and for filing with the Social Security Administration, the employees' earnings records were inadvertently destroyed.

None of the employees resigned or were discharged during the year, and there were no changes in salary rates. The social security tax was withheld at the rate of $6\mathrm{.}0\%$ and Medicare tax at the rate of $1\mathrm{.}5\%.$ Data on dates of employment, salary rates, and employees' income taxes withheld, which are summarized as follows, were obtained from personnel records and payroll records:

Employee Date First

Employed Monthly

Salary Monthly

Income

Tax

Withheld

Arnett Nov. $16$ $$5,500$ $$944$

Cruz Jan. $24,800833$

Edwards Oct. $18,0001,592$

Harvin Dec. $16,0001,070$

Nicks Feb. $110,0002,350$

Shiancoe Mar. $111,6002,600$

Ward Nov. $165,220876$

Required:

$1.$ Determine the amounts to be reported on each employee's Wage and Tax Statement $($Form W$-2)$ for $20$Y$8.$ Enter amounts to the nearest cent if required. Enter all amounts as positive numbers.

Employee Gross

Earnings Federal Income

Tax Withheld Social Security

Tax Withheld Medicare

Tax Withheld

Arnett $fill in the blank $1$

$8,250$

$fill in the blank $2$

$1,416$

$fill in the blank $3$

$fill in the blank $4$

Cruz fill in the blank $5$

$57,600$

fill in the blank $6$

$9,996$

fill in the blank $7$

fill in the blank $8$

Edwards fill in the blank $9$

$24,000$

fill in the blank $10$

$4,776$

fill in the blank $11$

fill in the blank $12$

Harvin fill in the blank $13$

$6,000$

fill in the blank $14$

$1,070$

fill in the blank $15$

$360$

fill in the blank $16$

$90$

Nicks fill in the blank $17$

$110,000$

fill in the blank $18$

$25,850$

fill in the blank $19$

$6,600$

fill in the blank $20$

$1,650$

Shiancoe fill in the blank $21$

$116,000$

fill in the blank $22$

$26,000$

fill in the blank $23$

$6,960$

fill in the blank $24$

$1,740$

Ward fill in the blank $25$

$7,830$

fill in the blank $26$

$1,314$

fill in the blank $27$

fill in the blank $28$

$fill in the blank $29$

$fill in the blank $30$

$2.$ Compute the following employer payroll taxes for the year: $($a$)$ social security; $($b$)$ Medicare; $($c$)$ state unemployment compensation at $5\mathrm{.}4\%$ on the first $$10,000$ of each employee's earnings; $($d$)$ federal unemployment compensation at $0\mathrm{.}6\%$ on the first $$10,000$ of each employee's earnings; $($e$)$ total.